Booz Allen Hamilton Inc. awarded $71.9M for program management and acquisition support services to the Department of Defense

Contract Overview

Contract Amount: $71,948,449 ($71.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2012-11-30

End Date: 2017-11-29

Contract Duration: 1,825 days

Daily Burn Rate: $39.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST NO FEE

Sector: Defense

Official Description: PMW/A 170 PROGRAM MANAGEMENT, COST MODELING, ACQUISITION SUPPORT, CONTRACTS SUPPORT, INFORMATION ASSURANCE AND COST ESTIMATING AND ANALYSIS SUPPORT.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $71.9 million to BOOZ ALLEN HAMILTON INC for work described as: PMW/A 170 PROGRAM MANAGEMENT, COST MODELING, ACQUISITION SUPPORT, CONTRACTS SUPPORT, INFORMATION ASSURANCE AND COST ESTIMATING AND ANALYSIS SUPPORT. Key points: 1. Contract provides essential program management, cost modeling, and acquisition support, indicating a need for specialized expertise. 2. The contract was awarded through full and open competition, suggesting a robust market for these services. 3. The duration of the contract (5 years) points to a long-term requirement for sustained support. 4. The contract type (Cost No Fee) implies that the contractor is reimbursed for allowable costs but does not receive a fee, which can be a risk mitigation strategy for the government. 5. The award value of approximately $71.9 million over five years suggests a significant investment in program management capabilities. 6. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) indicates the specialized nature of the support required.

Value Assessment

Rating: good

The contract value of $71.9 million over five years averages to approximately $14.4 million per year. Benchmarking this against similar large-scale program management and acquisition support contracts within the Department of Defense is crucial. Without specific comparable contract data, it's difficult to definitively assess value for money. However, the full and open competition suggests that pricing was likely competitive. The Cost No Fee (Cost Plus Fixed Fee) contract type, while unusual, could indicate a focus on cost control by the government, but also shifts risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 5 bids indicates a healthy level of competition for these specialized services. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces. Multiple bidders typically result in a more cost-effective outcome for the government.

Public Impact

The Department of Defense benefits from enhanced program management, cost modeling, and acquisition support, leading to more efficient program execution. Services delivered include critical functions such as information assurance and cost estimating, which are vital for defense program success. The geographic impact is primarily within Virginia, where the Defense Contract Management Agency (DCMA) is located, but the support likely extends to various defense programs nationwide. The contract supports a workforce of skilled professionals in program management, acquisition, and cost analysis, contributing to the federal acquisition workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost No Fee contract type places the financial risk on the contractor, which could lead to potential disputes or a reluctance to incur costs beyond what is strictly necessary, potentially impacting service quality if not managed carefully.
The broad scope of services (program management, cost modeling, acquisition support, information assurance, cost estimating) could lead to scope creep if not clearly defined and managed.
Reliance on a single large contractor for such critical support functions could pose a risk if the contractor's performance falters or if there are unforeseen business challenges.

Positive Signals

Awarded through full and open competition with multiple bidders, indicating a competitive market and likely fair pricing.
The contract duration of five years suggests a stable, long-term need for these critical services, allowing for consistent support.
The contractor, Booz Allen Hamilton Inc., is a well-established firm with significant experience in government contracting, suggesting a high likelihood of successful performance.
The specific nature of the services (program management, cost modeling, acquisition support) points to a strategic investment in improving defense acquisition processes.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting government acquisition and program management functions. The market for these services is substantial within the federal government, particularly the Department of Defense, which relies heavily on specialized contractors for complex program oversight and execution. Comparable spending benchmarks would involve analyzing other large-scale A&AS (Acquisition and Administrative Support) or engineering services contracts awarded to large prime contractors by various federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton Inc. is a large prime contractor. While there is no direct information on subcontracting plans, large prime contracts of this nature often involve subcontracting opportunities for small businesses, particularly in specialized areas. However, the absence of a small business set-aside means direct opportunities for small businesses to compete for the prime contract were limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Department of Defense contracting officers and the Defense Contract Management Agency (DCMA). The contract type (Cost No Fee) implies a focus on cost accountability, with the government reimbursing allowable costs. Transparency is generally maintained through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Acquisition Support Services
Program Management Support
Cost Estimating and Analysis
Information Assurance Services
Engineering Services Contracts

Risk Flags

Contract Type Risk (Cost No Fee)
Potential for Scope Creep
Contractor Performance Risk
Reliance on Single Large Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.9 million to BOOZ ALLEN HAMILTON INC. PMW/A 170 PROGRAM MANAGEMENT, COST MODELING, ACQUISITION SUPPORT, CONTRACTS SUPPORT, INFORMATION ASSURANCE AND COST ESTIMATING AND ANALYSIS SUPPORT.

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $71.9 million.

What is the period of performance?

Start: 2012-11-30. End: 2017-11-29.

What is the track record of Booz Allen Hamilton Inc. in performing similar program management and acquisition support contracts for the Department of Defense?

Booz Allen Hamilton Inc. has a long and extensive history of providing program management, acquisition support, and engineering services to the Department of Defense and other federal agencies. They are a major government contractor known for their expertise in these areas. Their track record typically includes supporting complex weapon systems, IT modernization efforts, and strategic planning initiatives. While specific performance metrics for this particular contract are not detailed here, their overall reputation and extensive experience suggest a strong capability to meet the requirements. Historical data on their past performance, often available through sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS), would provide more granular insights into their success rates, quality of service, and adherence to schedule and budget on previous engagements.

How does the average annual value of this contract compare to similar program management support contracts within the DoD?

The average annual value of this contract is approximately $14.4 million ($71.9 million / 5 years). Comparing this to similar contracts requires access to a comprehensive database of federal procurements. However, for large-scale, complex programs within the Department of Defense, this annual value is within a reasonable range for specialized program management, cost modeling, and acquisition support. Contracts supporting major defense acquisition programs can range from tens of millions to hundreds of millions of dollars annually, depending on the program's phase, complexity, and scope. The fact that this contract was competed under full and open competition with multiple bidders suggests that the government sought competitive pricing, and this value likely reflects market rates for such specialized services.

What are the primary risks associated with a 'Cost No Fee' contract type for the government in this context?

The 'Cost No Fee' (CNF) contract type, while less common than other cost-reimbursement structures, places the financial risk primarily on the contractor. The government reimburses the contractor for allowable costs incurred but does not pay a fee or profit. For the government, the primary risks are ensuring the contractor remains motivated to perform efficiently and effectively without the incentive of profit. There's a potential risk that the contractor might cut corners on quality or scope to manage costs, or that disputes could arise over allowable costs. Additionally, if the contractor faces significant unforeseen cost overruns, they bear the entire burden, which could potentially lead to financial distress for the contractor and impact contract performance or continuity. However, CNF can be advantageous when the government wants to limit its financial exposure and ensure cost control, especially in situations where profit is deemed inappropriate or difficult to define.

What is the expected impact of this contract on the efficiency and effectiveness of DoD acquisition processes?

This contract is expected to enhance the efficiency and effectiveness of DoD acquisition processes by providing specialized expertise in program management, cost modeling, acquisition strategy development, and information assurance. These services are critical for ensuring that defense programs are acquired on time, within budget, and meet their intended performance requirements. Improved cost modeling and estimating can lead to more accurate budget planning and reduce cost growth. Strong program management ensures better coordination, risk mitigation, and execution oversight. Information assurance support is vital for protecting sensitive program data and systems. Ultimately, by leveraging the contractor's specialized skills, the DoD aims to streamline its acquisition lifecycle, make better-informed decisions, and achieve better overall program outcomes.

How has federal spending on engineering and management support services like this trended over the past five years?

Federal spending on engineering and management support services, particularly within the Department of Defense, has generally remained robust and has seen an upward trend over the past five years, driven by modernization efforts, cybersecurity needs, and ongoing global security challenges. Contracts like this one, falling under NAICS code 541330 (Engineering Services) and related management support categories, represent a significant portion of the federal contracting budget. Factors such as increased defense spending, the need for advanced technological integration, and the outsourcing of specialized functions contribute to this trend. While specific figures fluctuate based on budget allocations and program priorities, the demand for high-level technical and programmatic support services remains consistently high, indicating a sustained market for contractors like Booz Allen Hamilton.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002412R3217

Offers Received: 5

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: BOOZ ALLEN HAMILTON INC, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $72,895,957

Exercised Options: $72,895,957

Current Obligation: $71,948,449

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $142,500,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline